RCI Hospitality Holdings Inc. Common Stock (RICK)

FairStock Score: 33/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I am wary of businesses that depend on discretionary spending and local regulation, but RCI Hospitality is an asset-heavy operator in a niche I can understand. It runs adult nightclubs and Bombshells restaurants. In fiscal 2025, the year ended 2025-09-30, revenue was $279.4 million, net income was $10.8 million, and diluted EPS was $1.23. In fiscal 2024, revenue was $295.6 million, net income $3.0 million, and diluted EPS $0.33. In fiscal 2023, diluted EPS was $3.13. That tells me earnings are cyclical and uneven. The latest filed quarter, fiscal Q3 2026 ended 2026-06-30, showed revenue of $73.9 million, net income of $6.4 million, and diluted EPS of $0.83, but fiscal Q1 2026 and fiscal Q2 2026 both had losses. Free cash flow is the attraction: $34.7 million trailing, a 17.2% yield on the $202.1 million market cap. At $26.44 on 2026-10-13, the stock trades at 0.86 times book, and FairStock's Lynch category is an asset play. Piotroski is 9/9, hinting at improving fundamentals. Yet Altman Z-Score is 1.02, debt-to-equity is 1.13, ROCE is 4.19%, and ROE is -1.52%. A 17.2% FCF yield can be a sign of cheapness or of risk. Without a durable moat, I would demand a large margin of safety and watch debt and cash generation closely.

In plain English: RCI Hospitality runs upscale adult nightclubs and a restaurant chain called Bombshells. The business is mixed: the latest quarter was profitable and it generates a lot of spare cash, but annual profits have been uneven and it carries a lot of debt. At $26.44 on 2026-10-13, the price looks cheap compared with its accounting value and spare cash, though the risks mean it is not a simple bargain.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-06-30) · fiscal Q2 2026 10-Q (period ended 2026-03-31) · fiscal Q1 2026 10-Q (period ended 2025-12-31) · fiscal Q4 2025 10-K (period ended 2025-09-30) · FY2025 10-K (period ended 2025-09-30) · FY2024 10-K (period ended 2024-09-30) · FY2023 10-K (period ended 2023-09-30)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer